SouthField 'quagmire' triggers state review

Thursday

Apr 10, 2014 at 2:39 AMApr 10, 2014 at 5:06 PM

The state plans to begin an in-depth review of the SouthField project to ensure that it will be able to cover a $30 million loan, adding another complication to the already uncertain future of the stalled development.

Christian Schiavone The Patriot Ledger @CSchiavo_Ledger

WEYMOUTH – The state plans to begin an in-depth review of the SouthField project to ensure that it will be able to cover a $30 million loan, adding another complication to the already uncertain future of the stalled development.The state’s Executive Office of Administration and Finance will perform a formal review of the project because Southfield’s quasi-governmental overseer, South Shore Tri-Town Development Corp., did not provide updated revenue projections by the April 4 deadline, a spokeswoman for the office said Wednesday.

The office requested the information in a March 4 letter to Tri-Town. The letter also said that if the new projections put the ability to repay in doubt, the state could demand that Tri-Town pay off the balance of the loan.

Those projections were meant to show that the project will provide the state with sufficient new tax revenue to pay back the $30 million state loan that went to build the first phase of the Delahunt Parkway, which cuts across the former South Weymouth Naval Air Station.

The review could take about a year and involve hiring a consultant to do a feasibility study on the project.

SouthField was supposed to be a thriving mix of homes and businesses on the site of the former base, which includes land in Weymouth, Abington and Rockland. But it has struggled to attract commercial builders, and housing construction has petered out.

The project’s master developer, Starwood Land Ventures, wants the Legislature to act by July 31 to approve a sweeping overhaul that would slash Tri-Town’s authority and shift tax revenue and responsibility for public services to the towns.

Tri-Town and Starwood have blamed each other for the project faltering.

Tri-Town CEO Kevin Donovan said he asked Starwood to provide updated financial projections to give the state, but the company didn’t. He accused the developer of holding out to increase pressure on town officials to get behind its proposed changes.

“As a result, we’re caught in this quagmire,” Donovan said. “This is clearly a strategy move by Starwood to try to show everything is held up so they can get their legislation passed.”

Matthew Barry, a Starwood vice president, said the company’s proposed overhaul would create enough revenue to cover the loan and move the project forward, something he said Tri-Town has been unable to do.

“With the legislation, all of the new net revenue can be generated over a 10-year period of time,” he said. “We have presented those financials to (the Office of) Administration and Finance. Hopefully, they see what we see.”

Under the terms of the loan, SouthField is supposed to generate enough revenue through state taxes on things like workers’ wages and sales taxes to cover the loan payments – about $1.8 million per year. If that doesn’t happen, Tri-Town must pay the difference.

Town Council President Patrick O’Connor also blamed Tri-Town for not complying with the state’s request for information. He said he is not sure what will happen if the state review concludes that the project won’t generate enough revenue to cover the loan, but that such a finding could damage SouthField’s future.

“I don’t know what happens at that point in time, but I don’t want to find out,” O’Connor said. “That’s obviously a scary scenario.”

Plans for SouthField include about 2,800 homes and apartments and 900,000 to 2 million square feet of commercial space.

Christian Schiavone may be reached at cschiavone@ledger.com. Follow him on Twitter @CSchiavo_Ledger.